How the Early Success of Hewlett Packard Essays

How the Early Success of Hewlett Packard Essays How the Early Success of Hewlett Packard Essay How the Early Success of Hewlett Packard Essay Electric to draft a management style unique to Hewlett and Packard-a management style that was priceless in terms of success to the company. Parallels can be drawn to the lesson Louis Assize Imparted to his students that observation Is a powerful teacher; In fact he encouraged his students not to be content with Just what they saw but to proactively discover as much as possible on a given subject. By keenly observing the effect of the GE control-oriented management style from the top-level down to the factory floor, and observing the difference in results by proactively engaging in a different management style with the same employees, Packard gained invaluable Insight on how to manage his staff at his own company to reap innovative results. Some aspects of the success of Hewlett and Packard can be attributed to the adherence to the requirements for entrepreneurial management outlined by Peter Trucker. First of all, Packards eye-opening experience at General Electric was an eye-opener leading the founders to realize the importance of a top management team in the early stages of the venture and make it high priority; this realization in he early stages of growth is in adherence with Truckers recommendation to build a top management team before the venture reaches the point where it must have one (Trucker, Peter F. Innovation and Entrepreneurship. New York: Harper Collins, 1985. Peg 198) The assumption of an Informal management team at the early stages of the venture is an approach recommended by Trucker as well and that gave the HP team members time to learn and identify their strengths-eventually allowing for the top management to be the best suited for the roles and responsibilities, including he founders. Hewlett and Packard sought stable long-term growth and achieved this using financial foresight; the management made a decision not to assume long- term debt and made focused financial decisions that kept the company alive after World War II. Trucker states It explicitly In his requirement for financial foresight that the lack thereof is the most serious affliction of the new venture. Importantly, HP never made profit the first priority as a growing venture and conservatively financed new products-only expanding into markets where it did not come head-to-head with established competitors. The foresight evidenced by Hewlett and Packard is strongly snow Day ten Tact Tanat ten company Dulling was constructed so It could D converted into a grocery store in the event that the company failed. Last but not least, Hewlett and Packard as founders of the enterprise made a brilliant decision to identify their best roles in the early stages of the company; Trucker stresses the importance of the original entrepreneurs accepting their changing roles as the venture grows and the success of Hewlett and Packard can strongly be attributed to this. Drawing on their strengths, the two founders assumed positions best suited for the general good of the company; Packard became president and Hewlett was content with taking charge of product development. In addition to this, the two entrepreneurs recognized the importance of maintaining a relationship with underside mentor-someone from without the company who could provide objective advice. This relationship later led to opportunities for the company in terms of a relationship with Stanford that in turn brought top talent into the company-only edifying their position as a top-tech company.